CSR Guidelines for the Financial Sector - page 26

CSRGUIDELINES FOR THE FINANCIAL SECTOR
12
Why Engagewith Stakeholders?
CreatingValueandWealth
Organizational wealth is the result of its long term performance and track recordwhich can be defined in terms of its
assets, competencies, intellectual property, and the revenue generation channels it possess. Thewealthier an
organization is the better positioned it is to attract talent, create value to its consumers and shareholders, and to
invest in new revenue generating streams.
It was found that good treatment of employees and other stakeholders is directly linked to financial performance
results within the Fortune 500 companies. In addition, researchers have found evidence that addressing the
concerns of customers, employees and communitymembers also benefits shareowners in the long run (Preston and
Sapienza).
Outlined in the below table, is a demonstration of the possible stakeholder contribution to an organization’s wealth.
Stakeholder ContributionAssociatedWithan organization’sWealth:
StakeholderGroup:
Investor and lenders
Employees
Unions
Customers / USERS
Supply chain
Joint venture partners and alliances
Local communities
Governments
Regulatory authorities
Source: Adapted from; Poet, Preston and Sachs (2002), p
Contributions:
• Capital , equity and / or debt
• Financial market recognition (reducing costs and risk )
•Development of human capital
•Collaborativeworkplace relation
•Workforce stability and conflict resolution
• Brand loyalty and reputation
• Repeated /related purchases
•Collaborative design , development and technological
•Network and value chain efficiencies
•Collaborative cost – development and technological
• Strategic resources and capabilities
• License to operate
•Mutual support and accommodation
•Macrocosmic and social polices
• Validation of product / service character or quality levels
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